AICPA Governmental & Not-for-Profit Accounting

Question 1

Which basis of accounting is used for governmental fund financial statements under GASB standards?

Accepted Answer

Modified accrual basis

Answer

Full accrual basis

Answer

Cash basis

Answer

Tax basis

Question 2

Which fund type would a state government use to account for resources legally restricted to pay long-term debt principal and interest?

Accepted Answer

Debt service fund

Answer

Special revenue fund

Answer

Capital projects fund

Answer

Permanent fund

Question 3

What does GASB stand for?

Accepted Answer

Governmental Accounting Standards Board

Answer

Government Accounting Standards Bureau

Answer

General Accounting and Standards Bureau

Answer

Government Auditing and Standards Board

Question 4

Which financial statement is unique to governmental fund accounting and reconciles fund balances to government-wide net position?

Accepted Answer

Balance Sheet with reconciliation

Answer

Statement of Net Position

Answer

Statement of Cash Flows

Answer

Statement of Activities

Question 5

Under GASB, the general fund is best described as:

Accepted Answer

The chief operating fund of a government

Answer

A fund for restricted operating revenues

Answer

A fund used solely for capital acquisitions

Answer

A trust fund for pension obligations

Question 6

GASB Statement No. 34 requires governments to report two distinct perspectives in their basic financial statements. These are:

Accepted Answer

Fund financial statements and government-wide financial statements

Answer

Federal perspective and state perspective

Answer

Proprietary statements and fiduciary statements

Answer

Operating budget and capital budget

Question 7

Which of the following is classified as a fiduciary fund under GASB standards?

Accepted Answer

Pension trust fund

Answer

Internal service fund

Answer

Capital projects fund

Answer

Enterprise fund